Set the Instant Pot on sauté mode and let it heat. Then add oil to it. Now add the onions, garlic, ginger and sauté them for about 3 minutes.
Add the tomatoes and spices. Saute for couple of minutes.
Add the butternut squash and water. Stir well and deglaze the pot making sure nothing is stuck to the bottom of the steel insert.
Switch the Instant Pot to pressure cook (manual) mode on high pressure for 5 minutes with the vent in sealing position. When the instant pot beeps, do a quick pressure release.
Add the coconut milk, lime juice and stir well. Then add the spinach and mix it in with the curry. Set the instant pot on saute mode and let it simmer for about 3 minutes.
Butternut Squash Curry with coconut milk and spinach is ready. Serve over rice and garnish with chopped cilantro and crushed peanuts.